Strategy for Northern Michigan Vacation Rental?

[Sarah Lorenz]

I'm interested in buying a lake house in Northern, or possibly mid-Michigan. I have rented a few for vacations on HomeAway, and now I'd like to just own one myself for use a couple of weeks a year and hopefully have it pay for itself or cash flow. I'd appreciate any advice that investors are willing to share. Here are a few of my questions:

My criteria for purchase would be lake-front, all-sports lake, minimum of 3 bedrooms, 2 baths. Should I stick with this or try to go larger, like a 4 bed or more? I have a feeling that this might be the sweet spot--not too expensive, but workable for most people's needs. 

I'm guessing from some of the long DOM that I see on listings that I might be able to get seller financing on a second home. Do you think I'm right?

Is it worth paying more for a place near the ski resorts to get winter rentals as well? I don't know much about this aspect. How close do you have to be to capture this market?

Although I'm used to rehabbing, I'm debating whether or not to jump into a major renovation on a place 2-4 hours away. Would it be worth it? How much more rent does a fully rehabbed house command? And how much does a really nicely decorated house command? Most of the rentals I see are pretty awful when it comes to decor. 

Should I opt for something around 2 hours from home, like Houghton or Higgins Lake? Houghton Lake houses are pretty cheap. Why? Or should I go for a premium property near the Sleeping Bear Dunes or Charlevoix?  That would put me more like 4 hours from home. Are there any locations that will likely see more appreciation? Bear Lake or Ludington area on the west side of the state are also options. How much are the rent differentials? When I rent personally, I look all over the state for the type of house I want, not so much the town that it is near. But that might not be everyone. Any particular lakes or locations that I should consider?